The Assessing Officer treated the assessee as an assessee-in-default for failure to deduct tax at source on the value of residential accommodation provided to its employees by directly applying Rule 3. The Tribunal held that the applicability of Rule 3 arises only after the Assessing Officer records a finding that the accommodation was provided at a concessional rent within the meaning of section 17(2)(ii). In the absence of such a finding, computation of perquisite value under Rule 3 was without jurisdiction and the order treating the assessee as an assessee-in-default was unsustainable. The Tribunal held that although the Indian Institute of Technology was established under an Act of Parliament and functioned under the administrative control of the Central Government, it did not become the Central Government itself. Consequently, its employees could not be treated as Central Government employees for determining the value of residential accommodation under Rule 3.  (AY. 2012-13).